Inflation Remains High Despite Declines – Economic Analyst
By Rebecca Okine
Despite recent signs of progress, economic analyst at Zed Emmanuel Boateng has argued that Ghana’s inflation remains high.
His assessment follows new data from the Ghana Statistical Service indicating that inflation fell to 21.2% in April 2025, down from 22.4% in March. This marks the fourth consecutive monthly decline since January.
Speaking on the Business Breakfast on Zed yesterday, Mr. Boateng cautioned against misinterpreting the downward trend as a sign that the inflation challenge has been resolved.
“Inflation is trending downwards, yes, but it is still high,” he stated.
According to Mr. Boateng, Ghana’s high inflation is primarily driven by high energy costs, transport-related costs, and a high dependency on imports.
“High import dependence, especially for fuel and key inputs, continues to push prices up, compounded by currency depreciation.”
Mr. Boateng also addressed the recent performance of the cedi, which has shown signs of stability and modest appreciation in late April and early May. However, he clarified that this recent strength had little impact on the April inflation rate, as the cedi was still depreciating during that period.
“Someone might say the cedi is doing better now, so why is inflation still high? But that’s not the point,” he said. “This inflation is for April 2025, and at that time, the cedi was still depreciating against the dollar.”
Looking ahead, Mr. Boateng expressed optimism that inflation will continue to reduce. He believes that sustained exchange rate stability and deliberate policy interventions in areas such as food production and transport could help lower inflation in the coming months. “The 0.8% month-on-month rise suggests a degree of stability ahead,” Mr. Boateng noted. “It’s relatively modest, and for me, it’s not too early to say that we could see inflation fall further.”
